Summary
Summary of Chapter 31: Business Cycle
- Module
- Institution
- Book
Summary of Chapter 31
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Economics Y2Q1
-
Summary International Macroeconomics For Business | IB year 2 | HvA
-
Summary economics IB year 2 Q1
Seller
Followlucaallaart
Reviews received
Content preview
Chapter 31: Business CyclesShort-run fluctuations are more obviously felt by most people. Over time, economies
fluctuate between periods of relative stability with economic growth, falling unemployment,
and inflation at relatively low and stable levels, and periods where economic growth declines
and unemployment rises. These periods of expansion and slowdown are referred to as the
business cycle. Economists wanted to investigate why economic variables moved together
in times of economic slowdown; they defined a recession as characterized by a period of
falling incomes and rising unemployment, which occurs after two successive quarters of
negative growth. If such a contraction in growth continues and is more severe it might be
described as a depression. Business cycles can be analyzed by looking at periods of
economic growth and identifying peaks and troughs in an activity where each represents
turning points. A peak occurs when output, employment, retail sales or manufacturing
production, begin to decline together. A trough refers to the time when these economic
variables begin to rise. Some variables, such as employment, may not change at the same
time as others and are regarded as lagging indicators.
Trend Growth Rates
Most of the data we will be looking at in this chapter is classed as time-series data,
observations on a variable over a time period and which are ordered over time. Central to
the analysis of business cycles is GDP over time.
Here we can see the UK GDP growth over the period 1960-2014. And below that, we can
see the European Union GDP growth over that same time period.
Data Concepts
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lucaallaart. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £4.72. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78252 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now